With the real estate market going on a tear in 2020, this is a common question being asked by clients. It is important to note that nobody truly knows what the next year or two will bring for the real estate market. In addition, the biggest wild cards in the equation will be how well we can control the pandemic and whether our economy will be able to recover. Moving into the coming months, we expect both housing inventory and interest rates to remain low. Needless to say, this is negative and positive news, respectively for buyers.
South Florida market expectations
Although some people expect the COVID-19 pandemic to depress prices, many real estate analysts predict the opposite: They say the supply of new homes will tighten further in 2021 and prices will leap forward. As a matter of fact, Realtor.com expects prices in South Florida to rise by 7.1% compared with this year, while sales will grow only 3.7%.
COVID-19 has redefined the home as we know it. Home is now where many work. Home is now where many go to school. Home is even considered a social escape by many. With this said, this has caused a lot of movement in the marketplace with many home owners looking for more space to accommodate these increased demands. To many across the country, Florida is a great option to relocate to and work remotely. Just think, a tax-friendly state with a tropical climate is quite appealing to many Americans. This is leading to an even more competitive housing market.
Summary
As mentioned in the beginning of this article, nobody knows for sure what the real estate market will do in the future. With this said, The Sunshine State continues to be one of the top two states that Americans are moving to (Texas is the other state). With approximately 1,000 people moving to the state of Florida each day, this is only creating a higher demand for housing. As we always say, South Florida will continue to be one of the most desirable destinations in the country. If you are considering making South Florida your home, we would recommend working with a knowledgeable real estate professional that can put you on automatic listing alerts that meet your desired criteria. You will want to act swiftly on any property that interests you and you should also be able to take advantage of the historically low mortgage interest rates right now as well.
